Debt Recovery Tribunal (DRT) | Best Lawyer for DRT

Introduction to Debt Recovery Tribunals (DRT)

Banking institutions and financial organizations often face challenges in recovery of loans advanced by them to specific individuals or company entities. Due to this, the banks and monetary organizations are restraining on their own from advancing out loans. There was a requirement to obtain a system that is efficient recuperate the mortgage from borrowers. This resulted in the creation of Debt Recovery Tribunals (DRTs) after the passage of Recovery of Debts because of Banking institutions and Financial Institutions Act (RDDBFI), 1993. DRTs handle the full situations in regard to disputed loans above Rs. 10 lakhs. Debt Recovery Appellate Tribunals (DRATs) handles the appeals arising out of the orders of DRTs. Currently, there are 33 DRTs and 5 DRATs employed in India in order for recovery of loan from borrowers, the banks and financial institutions had to register a suit in the civil courts. The suit was decided and tried as per the provisions of Civil Procedure Code (CPC), 1908 which would be long and complex.

The Birth of DRTs and Their Role in Loan Recovery

A committee ended up being formed in 1981 to recommend reforms under the Chairmanship of Mr. T. Tiwari. It absolutely was observed by the committee that considering that the court was strained with way too many cases, importance was not directed at instances in respect to the recovery of dues of banks and monetary organizations. The committee advised measures which are different amongst which was developing quasi-judicial figures that will deal just with recovery issues. However, establishing of these systems wasn’t initiated for around ten years later on around Indian monetary market and liberalization that is economic. The aim that is first role of DRT is that the data recovery of loan from borrowers which will be because of finance institutions and banks. These tribunals were designed to expedite the process of loan recovery and reduce the burden on the traditional court system.

The Power and Functioning of DRTs

The Tribunal is empowered to try and settle cases recuperation of advances from NPAs as previously mentioned by the banks beneath the RBI recommendations. The Tribunal has all the powers vested aided by the District Court. The Tribunal additionally features a Recovery officer whom assists in executing the recovery Certificates as passed away by the Presiding Officers. DRT followed the proficient appropriate procedure by emphasizing on speedy disposal of this situations and fast implementation of the order that is final. A suit may be designed to DRT either through direct application or through SARFAESI route.

The Legal Paradox: Balancing Protection and Discrimination

The legislature has established specialized courts to balance the rights of creditors and borrowers, called as Debt Recovery Tribunals using the goal of providing financial bodies with a speedier and more adept technique of recovery of debts. Debt Recovery Appellate Tribunals are founded to take into account the appeal up against the decision of DRT. These Tribunals have added to lessening the duty on civil courts.

The Role of Education and Awareness in Debt Recovery

The world of finance can be complex, with various laws and regulations governing it. Understanding the intricacies of debt recovery laws and processes can help individuals and institutions make informed decisions. One such area of financial law is Debt Recovery Tribunals (DRT), which were set up to help banks and financial institutions recover bad loans. DRT is a quasi-judicial body that has been set up to facilitate the speedy recovery of debts from defaulting borrowers. The government established DRTs under the Recovery of Debts Due to Banks and Financial Institutions Act (RDDBFI), 1993. The main objective of the act is to provide for the expeditious adjudication and recovery of debts due to banks and financial institutions.

The SARFAESI Act and Its Role in Debt Recovery

One of the most common ways in which banks recover bad loans is through the SARFAESI Act, which stands for The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act. The SARFAESI Act allows banks and other financial institutions to auction residential or commercial properties to recover loans. The act was introduced in India in 2002 to help banks and financial institutions recover loans from defaulters by enabling them to enforce security interest without the intervention of the court. The SARFAESI Act empowers banks to take possession of the assets offered as security and sell them to recover the loan amount. It also enables banks to issue notices to the borrowers demanding payment of the loan, and seize and sell the assets without the need to obtain court permission.

The Debt Recovery Appellate Tribunal (DRAT) and Its Function

However, the process of debt recovery is not always straightforward, and in some cases, the defaulter may not agree to repay the debt. This is where DRT comes into play. If a bank or financial institution is unable to recover its debt, it can approach the DRT to recover the amount. The DRT will then issue a recovery certificate, which is a legally binding order to recover the debt. The process of debt recovery can be complex, and there are instances where decisions of the DRT are contested before the Debt Recovery Appellate Tribunal (DRAT) for relief.

The Importance of Legal Assistance in Debt Recovery Cases

Navigating the process of debt recovery can be complex and time-consuming, making it crucial to have competent legal assistance and it is important to have a good lawyer on your side who can guide you through the legal process.

Century Law Firm: Your Trusted Lawyers for DRT and DRAT Cases

Century Law Firm, based in Delhi, is a leading law firm specializing in DRT and DRAT cases. The firm has a team of experienced lawyers who are well-versed in the legal provisions related to debt recovery. The lawyers at Century Law Firm understand the complexities of DRT and SARFAESI Act cases and have a successful track record in recovering bad loans for their clients.

At Century Law Firm, the lawyers take a client-centric approach to each case, providing personalized solutions to suit the client’s specific requirements. The lawyers ensure that the clients are fully aware of their legal rights and obligations and are kept up-to-date with the latest developments in their case. The firm’s lawyers have a deep understanding of the DRT and SARFAESI Act, which enables them to provide their clients with the best legal representation and advice.

The Debt Recovery Tribunal (DRT) is a specialized court that deals with cases related to the recovery of loans and debts. It was established in 1993 under the Recovery of Debts Due to Banks and Financial Institutions Act (RDDBFI Act), 1993. The main objective of the DRT is to provide an expeditious and efficient mechanism for the recovery of bad debts.

When a borrower fails to repay a loan, the lender can initiate legal proceedings against the borrower to recover the debt. Under the RDDBFI Act, the lender can file a case with the DRT for the recovery of the debt. The DRT has the power to issue recovery certificates and attach the property of the borrower to recover the debt. The borrower can also file a counterclaim with the DRT if they have any objections to the claim of the lender.

Bank loans are a common form of financing in India, and they are offered by various public and private sector banks. The State Bank of India, ICICI Bank, HDFC Bank, Axis Bank, and Punjab National Bank are some of the major banks in India that offer various types of loans such as home loans, car loans, personal loans, education loans, and business loans.

The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002, is an important law that governs the recovery of loans in India. The SARFAESI Act provides a framework for the recovery of bad debts by banks and financial institutions. It allows banks to take possession of the security provided by the borrower and sell it to recover the debt.

The SARFAESI Act also provides for the creation of asset reconstruction companies (ARCs) that can purchase non-performing assets (NPAs) from banks and financial institutions. The ARCs can then take steps to recover the debt from the borrower or restructure the debt and sell it to investors.

Century Law Firm is one of the best law firms in Delhi that specializes in DRT and DRAT cases. The firm has a team of experienced and skilled lawyers who have a deep understanding of the legal and regulatory framework governing the recovery of bad debts in India.

The lawyers at Century Law Firm have represented various clients in DRT and DRAT cases, and they have a track record of success in recovering bad debts. They have a deep understanding of the SARFAESI Act, the RDDBFI Act, and other laws and regulations that govern the recovery of bad debts in India.

Century Law Firm provides end-to-end legal solutions for DRT and DRAT cases, including legal advice, drafting of legal documents, representation in court, and enforcement of recovery certificates. The firm has a strong network of professionals, including chartered accountants and valuers, who can provide valuable inputs in DRT and DRAT cases.

Borrowers who have taken loans from banks or financial institutions are often in a vulnerable position when they are faced with a default or non-payment situation. The lender can take various steps to recover the dues, such as filing a case in the DRT or invoking the provisions of the SARFAESI Act, which gives the lender the power to take over and sell the borrower’s secured assets. This can be a traumatic experience for borrowers who may not know their legal rights or the options available to them.

This is where the services of a good DRT lawyer come into play. A DRT lawyer can represent the borrower in proceedings before the DRT and protect their interests. The lawyer can challenge the lender’s claim, raise defenses, and also explore settlement options. A good DRT lawyer can help the borrower understand the legal process and provide guidance on the best way to approach the case.

Century Law Firm is a leading law firm in Delhi that represents borrowers in DRT cases. The firm has a team of experienced lawyers who are well-versed in the legal and procedural aspects of DRT cases. The firm understands the challenges that borrowers face and provides effective legal representation to protect their interests.

The firm’s lawyers have extensive experience in handling DRT cases and have successfully represented several clients in such matters. The firm has a reputation for providing high-quality legal services and is committed to ensuring that the borrower’s rights are protected.

Century Law Firm: Expertise in SARFAESI Act Cases

In addition to DRT cases, Century Law Firm also handles cases under the SARFAESI Act. Our team of experienced lawyers is well-versed in the intricacies of the SARFAESI Act and can provide comprehensive legal support. The SARFAESI Act provides for the recovery of secured loans by the lender without the intervention of a court. The Act empowers the lender to take possession of the secured assets and sell them without the borrower’s consent. However, the borrower has certain legal rights under the Act and can challenge the lender’s actions.

Century Law Firm’s lawyers are well-versed in the provisions of the SARFAESI Act and can provide effective legal representation to borrowers. The firm’s lawyers can challenge the lender’s actions, raise defenses, and also explore settlement options. The firm has successfully represented several borrowers in SARFAESI cases and is committed to protecting their legal rights.

In addition to DRT and SARFAESI cases, Century Law Firm also handles cases before the DRAT. The DRAT is the appellate forum for appeals against orders passed by the DRT. The firm’s lawyers have extensive experience in handling DRAT cases and can provide effective legal representation to borrowers.

In conclusion, if you are a borrower facing a default or non-payment situation, it is important to seek the services of a good lawyer. Century Law Firm is a leading law firm in Delhi that represents borrowers in DRT, SARFAESI, and DRAT cases. The firm has a team of experienced lawyers who are well-versed in the legal and procedural aspects of such cases. The firm is committed to protecting the borrower’s legal rights and providing effective legal representation to ensure a favorable outcome.

Conclusion: The Importance of Legal Representation in Debt Recovery Cases

In conclusion, navigating DRT and SARFAESI Act cases can be complex, underscoring the importance of experienced legal representation. Century Law Firm is one of the best law firms in Delhi for DRT and DRAT cases, with a team of experienced lawyers who have a successful track record in recovering bad loans for their clients. The lawyers at Century Law Firm provide personalized solutions to suit the client’s specific requirements and ensure that their clients are fully aware of their legal rights and obligations. If you have any queries related to debt recovery, it is advisable to consult with a lawyer at Century Law Firm.

Comprehensive FAQs on Debt Recovery Tribunals (DRT)

What is a Debt Recovery Tribunal (DRT)?

A Debt Recovery Tribunal (DRT) is a quasi-judicial body established under the Recovery of Debts Due to Banks and Financial Institutions Act (RDDBFI), 1993. DRTs are specialized courts designed to provide an expeditious and efficient mechanism for banks and financial institutions to recover debts from defaulting borrowers. These tribunals handle cases related to disputed loans above Rs. 10 lakhs and have all the powers vested in a District Court.

When was the DRT system established in India?

The DRT system was established in India in 1993 following the enactment of the Recovery of Debts Due to Banks and Financial Institutions Act (RDDBFI), 1993. The concept was recommended by a committee formed in 1981 under the Chairmanship of Mr. T. Tiwari, but the actual implementation took place during the period of economic liberalization in the early 1990s.

What is the minimum amount threshold for DRT cases?

DRT has jurisdiction over cases involving debts of Rs. 20 lakhs and above. Cases involving amounts below this threshold are handled by regular civil courts. This threshold ensures that DRTs focus on significant debt recovery matters that have substantial impact on banking institutions.

How many DRTs and DRATs are currently operational in India?

Currently, there are 33 Debt Recovery Tribunals (DRTs) and 5 Debt Recovery Appellate Tribunals (DRATs) operational across India. These tribunals are strategically located to ensure adequate coverage for debt recovery proceedings throughout the country.

What is the difference between DRT and DRAT?

DRT (Debt Recovery Tribunal): This is the primary tribunal that handles original applications for debt recovery from borrowers. It has the power to issue recovery certificates and attach properties for debt recovery.

DRAT (Debt Recovery Appellate Tribunal): This is the appellate forum that hears appeals against orders passed by DRTs. If a party is dissatisfied with a DRT’s decision, they can approach the DRAT for relief.

What powers does a DRT have?

A DRT has extensive powers including:

All powers vested in a District Court
Power to try and settle cases for recovery of advances from NPAs
Authority to issue recovery certificates
Power to attach and sell properties of defaulting borrowers
Jurisdiction to hear counterclaims filed by borrowers
Authority to summon witnesses and examine evidence

Who can file a case in DRT?

The following entities can file cases in DRT:

Banks (both public and private sector)
Financial institutions
Non-Banking Financial Companies (NBFCs)
Asset Reconstruction Companies (ARCs)
Any entity that has advanced loans and is seeking recovery of debts above Rs. 10 lakhs

What is the role of a Recovery Officer in DRT proceedings?

A Recovery Officer is an important functionary attached to each DRT who assists in executing recovery certificates issued by the Presiding Officer. The Recovery Officer is responsible for:

Implementing the final orders of the DRT
Attaching and selling properties as directed
Collecting the recovered amounts
Ensuring compliance with the tribunal’s directives

Can a case be filed in DRT through the SARFAESI route?

Yes, a case can be filed in DRT either through direct application or through the SARFAESI route. Under the SARFAESI Act, 2002, if a borrower challenges the bank’s action of taking possession of secured assets, the matter can come before the DRT for adjudication.

What is the SARFAESI Act and how does it relate to DRT?

The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002, allows banks and financial institutions to recover loans by taking possession of secured assets without court intervention. However, if borrowers challenge the bank’s actions under SARFAESI, these disputes can be adjudicated by DRTs.

What documents are required to file a case in DRT?

Essential documents for filing a DRT case include:

Original loan agreement and related documents
Security documents (mortgage deeds, hypothecation agreements)
Demand notices served to the borrower
Account statements showing outstanding dues
Board resolution authorizing the filing of the case
Valuation reports of secured assets
Proof of service of statutory notices

What is the procedure for filing a case in DRT?

The procedure involves:

Filing an Original Application (OA) with requisite court fees
Submission of all relevant documents and evidence
Serving notice to the respondent (borrower)
Attending hearings as scheduled by the tribunal
Presenting arguments and evidence
Obtaining the final order or recovery certificate

Can a borrower file a counterclaim in DRT?

Yes, borrowers can file counterclaims in DRT if they have valid objections to the lender’s claim. Counterclaims may include disputes regarding:

Calculation of outstanding amounts
Interest rates charged
Wrongful debiting of accounts
Violation of loan terms by the lender
Claims for damages due to wrongful actions

What is a Recovery Certificate?

A Recovery Certificate is a legally binding document issued by the DRT after determining that a debt is due and payable. It serves as an execution decree and empowers the Recovery Officer to:

Attach and sell the borrower’s properties
Recover the decreed amount
Take other coercive measures for debt recovery

How long does a DRT case typically take?

While DRTs were established to expedite debt recovery, the actual time depends on various factors:

Complexity of the case
Cooperation of parties involved
Availability of documents and evidence
Court’s workload Generally, cases can take anywhere from 6 months to 2-3 years for final disposal.

Can DRT proceedings be challenged?

Yes, DRT proceedings can be challenged through:

Filing an appeal before the DRAT within 45 days of the DRT order
Approaching the High Court under Article 227 of the Constitution in exceptional circumstances
Supreme Court through Special Leave Petition in rare cases

What is the limitation period for filing a case in DRT?

The limitation period for filing a debt recovery case in DRT is typically 3 years from the date when the cause of action arose (usually from the date of default). However, this may vary based on specific circumstances and the nature of the debt.

Can settlement be reached during DRT proceedings?

Yes, parties can reach an amicable settlement at any stage of DRT proceedings. The tribunal encourages settlements as they:

Save time and costs for both parties
Reduce the burden on the judicial system
Provide mutually acceptable solutions
Allow for restructuring of debts

What happens if a borrower doesn’t appear in DRT proceedings?

If a borrower fails to appear despite proper service of notice, the DRT can:

Proceed ex-parte against the borrower
Issue a recovery certificate based on the bank’s evidence
Direct attachment and sale of the borrower’s properties
Pass orders in the absence of the borrower

Are there any fees for filing cases in DRT?

Yes, there are prescribed court fees for filing cases in DRT, which vary based on:

The amount of debt claimed
Type of application (original application, appeal, etc.)
Additional prayers sought The fees are generally a percentage of the claimed amount, subject to minimum and maximum limits.

You can calculate the fees required through our court fees calculator.

Can immovable property be attached by DRT?

Yes, DRT has the power to attach both movable and immovable properties of the borrower for debt recovery. This includes:

Residential and commercial properties
Land and buildings
Bank accounts and deposits
Shares and securities
Business assets and inventory

What is the role of Asset Reconstruction Companies (ARCs) in DRT cases?

Asset Reconstruction Companies (ARCs) can:

Purchase non-performing assets (NPAs) from banks
File cases in DRT for recovery of purchased debts
Restructure debts and sell them to investors
Take over secured assets and manage them for recovery

Can a guarantor be proceeded against in DRT?

Yes, guarantors can be proceeded against in DRT cases as they are liable for the borrower’s debt. Banks can:

Include guarantors as respondents in the original application
Seek recovery from guarantors’ assets
Obtain orders against both primary borrowers and guarantors

What is the difference between civil court proceedings and DRT proceedings?

Civil Court Proceedings:

Follow the Civil Procedure Code, 1908
Time-consuming and complex procedures
General jurisdiction over all civil matters
No specialized knowledge of banking laws

DRT Proceedings:

Follow streamlined procedures under RDDBFI Act
Expeditious disposal of cases
Specialized jurisdiction for debt recovery
Expertise in banking and financial laws

Can a borrower approach DRT for relief?

While DRT is primarily meant for creditors to recover debts, borrowers can:

File counterclaims challenging the bank’s claim
Seek relief from wrongful actions by banks
Request time for repayment through settlement
Challenge the calculation of outstanding amounts

What is the effect of insolvency proceedings on DRT cases?

If insolvency proceedings are initiated under the Insolvency and Bankruptcy Code, 2016:

DRT proceedings may be stayed or suspended
The matter comes under the jurisdiction of the National Company Law Tribunal (NCLT)
Creditors must file their claims before the Resolution Professional
DRT proceedings can resume if insolvency proceedings are withdrawn

Can foreign banks file cases in DRT?

Yes, foreign banks operating in India can file cases in DRT for recovery of debts, provided:

They have proper authorization to operate in India
The debt amount exceeds Rs. 20 lakhs
The loan was advanced within Indian jurisdiction
They comply with RBI regulations

What is the role of valuers in DRT proceedings?

Valuers play a crucial role in:

Determining the market value of secured assets
Providing independent valuation reports
Assisting in the auction process
Ensuring fair value realization during asset sales

Can DRT order for attachment before judgment?

Yes, DRT can order attachment before judgment if:

There’s a prima facie case for debt recovery
The borrower is likely to dispose of assets
There’s a risk of defeating the bank’s claim
Proper security is provided by the applicant bank

What happens to joint borrowers in DRT proceedings?

In cases of joint borrowers:

All joint borrowers are typically made respondents
Each borrower is jointly and severally liable
Recovery can be made from any or all borrowers
Assets of all joint borrowers can be attached

Can a DRT case be transferred to another DRT?

Yes, a DRT case can be transferred to another DRT on grounds such as:

Convenience of parties
Better administration of justice
Location of assets
Availability of witnesses The transfer requires proper application and court approval.

What is the procedure for appeal in DRAT?

The appeal procedure in DRAT involves:

Filing appeal within 45 days of DRT order
Payment of prescribed appeal fees
Depositing 50% of the decreed amount (unless waived)
Serving notice to respondents
Attending hearings and presenting arguments

Can compound interest be claimed in DRT?

Banks can claim compound interest in DRT cases if:

The loan agreement provides for compound interest
The charging of compound interest is legally valid
Proper notice was given to the borrower
The calculation is transparent and verifiable

What is the significance of demand notice in DRT cases?

Demand notice is crucial as it:

Serves as formal notice to the borrower
Starts the recovery process
Establishes the cause of action
Provides opportunity for voluntary repayment
Is mandatory before initiating legal proceedings

Can a borrower seek stay of DRT proceedings?

A borrower can seek stay of DRT proceedings by:

Filing an application before the DRT itself
Approaching the DRAT in appeal
Moving the High Court in exceptional circumstances
Showing valid grounds for stay such as pending settlement negotiations

What is the role of advocates in DRT proceedings?

Advocates play a vital role in:

Representing clients before DRT
Drafting legal documents and applications
Presenting arguments and evidence
Advising on legal strategies
Facilitating settlements between parties

How are DRT orders enforced?

DRT orders are enforced through:

Recovery Officers who execute the orders
Attachment of borrower’s properties
Public auction of attached assets
Direct recovery from borrower’s bank accounts
Coercive measures as per the tribunal’s directions

Can a company in liquidation be proceeded against in DRT?

If a company is under liquidation:

DRT proceedings may be stayed
Claims must be filed before the liquidator
Recovery is subject to liquidation proceedings
DRT cannot interfere with the liquidation process

What is the difference between secured and unsecured debts in DRT?

Secured Debts:

Backed by collateral or security
Easier to recover through asset realization
Priority in recovery proceedings
Can invoke SARFAESI provisions

Unsecured Debts:

Not backed by specific security
Recovery depends on borrower’s other assets
Lower priority in insolvency proceedings
Limited enforcement options

Can DRT proceedings be conducted online?

With technological advancement, many DRTs have adopted:

E-filing of applications and documents
Video conferencing for hearings
Digital case management systems
Online payment of court fees However, the extent of online proceedings varies across different DRTs.

What is the role of RBI in DRT matters?

The Reserve Bank of India (RBI):

Issues guidelines for NPA classification
Regulates banking operations affecting DRT cases
Provides policy framework for debt recovery
Issues circulars on SARFAESI implementation
Supervises banking institutions filing DRT cases

Can agricultural loans be recovered through DRT?

Agricultural loans can be recovered through DRT if:

The loan amount exceeds Rs. 20 lakhs
No specific state legislation prohibits such recovery
The borrower is not a small/marginal farmer (subject to policy)
Proper procedures are followed as per agricultural debt laws

What is the effect of One Time Settlement (OTS) on DRT proceedings?

If an OTS is reached:

DRT proceedings can be withdrawn
Terms of settlement become binding
Default in OTS can revive original proceedings
Fresh legal action may be initiated for OTS default

Can interest on interest be claimed in DRT?

Interest on interest (compound interest) can be claimed if:

The loan agreement specifically provides for it
It’s not prohibited by any law or regulation
Proper calculations are provided
The borrower was given adequate notice

What is the procedure for auction of attached property?

The auction procedure involves:

Public notice of auction
Fixing reserve price (usually 75% of market value)
Conducting public auction
Issuing sale certificate to highest bidder
Depositing sale proceeds in court
Distribution as per tribunal’s directions

Can a borrower redeem attached property before auction?

Yes, a borrower can redeem attached property by:

Paying the entire decreed amount with interest
Depositing the amount in the tribunal
Seeking permission from the tribunal
Complying with all conditions set by the court

What is the limitation for execution of DRT orders?

DRT orders can generally be executed within:

12 years from the date of the order
Extension possible on sufficient cause
Fresh execution application required after limitation
Subject to provisions of the Limitation Act

Can foreign nationals be proceeded against in DRT?

Foreign nationals can be proceeded against in DRT if:

They have taken loans from Indian banks/financial institutions
They have assets in India
The debt amount exceeds Rs. 10 lakhs
Proper service of notice is possible

What is the role of chartered accountants in DRT cases?

Chartered Accountants assist in:

Calculating outstanding dues
Preparing financial statements
Auditing loan accounts
Providing expert testimony
Valuing business assets

Can DRT pass orders for specific performance?

DRT primarily deals with money recovery and generally does not pass orders for specific performance. However, it can:

Direct compliance with loan agreement terms
Order handover of secured assets
Pass necessary directions for debt recovery

What happens if the borrower becomes insolvent during DRT proceedings?

If insolvency is declared:

DRT proceedings are automatically stayed
Claims must be filed in insolvency proceedings
Moratorium applies to all recovery actions
DRT cannot proceed until insolvency is resolved

Can multiple banks file a joint application in DRT?

Yes, multiple banks can file joint applications in cases of:

Consortium lending
Multiple banking arrangements
Joint financing of projects
Common security arrangements

What is the procedure for withdrawal of DRT cases?

DRT cases can be withdrawn by:

Filing a withdrawal application
Obtaining borrower’s consent (if required)
Paying prescribed court fees
Getting tribunal’s permission
Complying with any conditions imposed

How are costs determined in DRT proceedings?

Costs in DRT proceedings include:

Court fees for filing applications
Advocate fees
Valuation charges
Service charges
Other incidental expenses Usually, the losing party bears the costs.

Can a borrower file a criminal complaint against recovery actions?

Borrowers can file criminal complaints if:

There’s criminal intimidation or coercion
Recovery agents exceed legal limits
There’s breach of peace during recovery
Illegal means are used for recovery However, bona fide recovery actions are protected under law.

What is the significance of possession notice under SARFAESI?

Possession notice under SARFAESI:

Formally takes possession of secured assets
Transfers custody to the bank
Allows banks to manage and sell assets
Can be challenged in DRT within 60 days

Can DRT proceedings affect credit score?

DRT proceedings can affect credit scores as:

Cases are reported to credit bureaus
Default classification impacts credit rating
Recovery proceedings are recorded
Settlement terms may affect future credit

What is the role of court commissioners in DRT?

Court commissioners in DRT:

Conduct local investigations
Value properties and assets
Serve notices and summons
Facilitate execution of orders
Report to the tribunal on ground realities

Can a borrower seek anticipatory bail in DRT-related matters?

While DRT proceedings are civil in nature, if related criminal cases are filed, borrowers can seek anticipatory bail from appropriate criminal courts. DRT itself doesn’t deal with criminal matters or bail applications.

How are disputed claims handled in DRT?

Disputed claims in DRT are handled through:

Detailed examination of evidence
Expert testimony if required
Legal arguments from both sides
Reasoned orders based on evidence

What is the effect of settlement on guarantors?

Settlement between bank and borrower:

May or may not discharge guarantors
Depends on terms of guarantee
Express release required for guarantor discharge
Guarantors may remain liable unless specifically released